Higher income shoppers are feeling a bit more optimistic.
Fifty-eight percent luxury consumers plan to spend the same or more on luxury in the next three months, according to the latest Saks Luxury Pulse survey, which was fielded in late July. This is an increase from 53% in the prior Saks Luxury Pulse (fielded in late April) and represents the first increase in luxury spending plans since the survey began tracking the metric in May 2022.
As macro-economic headwinds persist, luxury consumers are optimistic (68%) about their personal financial situation, but concerned (55%) about the overall economy. While optimism about respondents’ personal financial situation remains consistent with the prior survey (67%), concern towards the overall economy has improved by five percentage points compared to the prior survey.
When asked what would motivate them to spend more on luxury, 54% of total respondents who plan to spend less said they would be enticed by a sale or promotional event, consistent with the prior survey. Also, 35% said they would need to see improvement in the overall economy, down from 43% in the prior survey, reinforcing the growing optimism about the economy among luxury consumers.
Other highlights from the survey are below.
•Higher income respondents are more optimistic about the economy, with 48% of respondents with an income of $200K or more indicating such, up from 42% in the prior survey. Additionally, 64% of these respondents plan to spend the same or more on luxury in the next three months, up from 57% in the prior survey.
•In addition to luxury, respondents indicated plans to spend on travel. Among all respondents, 74% said they are planning to or have already booked a trip in the near future and, of those, and 72% said they plan to buy luxury items in preparation for their trips.
•When asked where they get fashion inspiration, respondents indicated that they browse retailers online or in person (54%) or look to social media (41%) and fashion journalism (40%).
•When browsing a retailer’s website, respondents said that outfit ideas for specific occasions (71%) and ideas for putting together outfits (70%) were the most helpful forms of inspiration.
•Sixty-nine percent of respondents indicated that they explore the curated content on a retailers’ site, with the top reasons being to learn about styling new trends, find style ideas before buying an item and for fun, signifying an interest in curated content for fashion inspiration.
“We are pleased to see the first increase in over a year in purchase intent across the luxury consumer continuum, an indication that core luxury consumers are starting to turn the corner,” said Marc Metrick, CEO, Saks. “As we look ahead, despite this positive inflection point in luxury consumer sentiment, we remain measured in our approach to navigating the rest of the year to ensure Saks is best positioned for long-term success.”
The Saks Luxury Pulse is a periodic online survey of luxury consumers’ attitudes towards shopping, spending and fashion trends. It is based on responses from 1,836 U.S.-based luxury consumers over age 18 and was fielded between July 20-24, 2023.